Chemung Financial (CMHG) investor relations material

Executive summary

• Net income for Q2 2026 was $8.8 million ($1.82 per share), a significant turnaround from a $6.5 million loss in Q2 2025, driven by higher net interest income, increased non-interest income, and lower provision for credit losses.

• For the first half of 2026, net income reached $18.0 million ($3.73 per share), compared to a $0.4 million loss in the prior year period.

• Strategic balance sheet restructuring and expansion into higher-growth markets supported earnings growth.

• Wealth management business continues to provide dependable non-interest income, with assets under management rising to $2.49 billion, up 6.6% from year-end 2025.

• Solid credit quality with consistently low non-performing assets and charge-offs.

Financial highlights

• Net interest income rose 18.8% year-over-year to $24.7 million for Q2 2026, with a net interest margin of 3.67%.

• Non-interest income was $6.5 million, up from negative $10.7 million in Q2 2025, reflecting the absence of prior-year securities losses.

• Non-interest expense increased 8.7% year-over-year to $19.3 million, mainly due to higher compensation and professional services.

• Annualized loan growth of 8.7% YTD, with commercial loan growth at 13.0%.

• Deposit growth of $93.3M (4.1%) since December 31, 2025, including a 9.2% increase in non-interest bearing deposits.

Outlook and guidance

• Management expects continued loan growth, especially in commercial real estate, and stable asset quality.

• Focus on revenue growth through deposit initiatives and scaling wealth management, especially in Western NY.

• Continued optimization of branch distribution, vendor contracts, and headcount.

• Enhanced digital experience and relationship-focused customer strategy.

• Charter conversion to a national bank is expected to be completed by year-end 2026, with OCC conditional approval.